Level Trading Indicator For MT4
The Level Trading Indicator For MT4 is an indicator that was built in order to assist the trader who takes active trading decisions, does his or her technical analysis, and does his or her charting of the various currency pairs and their timeframes using the Meta Trader 4 charting platform.
The Level Trading Indicator For MT4 can help a trader to quickly learn how the market works and to identify profitable trading opportunities in line with the market behavior the trader has learned.
The indicator will also enable the trader to spot reversals and a lot of other trading insights in the trading environment. This way, a trader can easily improve in their trading. Some of these trading insights and also advantages or disadvantages of using the indicator are outlined and discussed below.
Some of the Major Advantages and Disadvantages of using the Level Trading Indicator For MT4
One of the first major advantages of using the Level Trading Indicator For MT4t to the trader is that it can easily help him or her to learn market behavior just by looking at the indicator and how it interacts with the price during the trading day.
This means that the trader would quickly learn the way the market works in terms of the market movement, how or when they are formed, and how the trader can easily profit from these market moves. Usually, regardless of a trader's trading style or trading technique, the trader would need to have learned exactly how the market works if he or she wants to become a professional at reading what the market is saying and exactly where the market is going on the timeframes the trader works with every single day.
The indicator would clearly help the trader to see that the market moves in a specific pattern of creating highs and lows in a specific way. Generally, when the market wants to move to a particular direction, it often creates a series of 3 moves targeted in that particular direction.
This means that any market regardless of the trading timeframes or currency pair would generate a series of three different moves in a particular direction that it wants to move in. This would then help the trader to take advantage of the third part of the move if he or she wants to be a part of that particular price move. The 3 moves in any direction are usually comprised of two different moves in the direction that the market wants to move and 1 move in the opposite direction to that of that the price move.
This one opposite direction is usually a retracement or pullback where traders can take some profits on the trend or the initial price move. Hence, if a trader is able to spot the first and second parts of the move, it becomes easy for the trader to be prepared for the third part of the price move even before it happens in whatever timeframe the trader is watching the markets from.
This way, the trader can then easily prepare ahead of time as he or she would not need to guess which direction that the price is headed to since the price will generally show the direction it is headed to on the trader's charts. The move in this direction that the price is headed to is usually much more significant in terms of size than the move in the opposite direction.
The Level Trading Indicator For MT4 will help the trader to identify this price behavior on whatever timeframe he or she is watching from by using a different color for the new high or low that denotes the first leg or first part of every new move in a particular direction in the price. The trader using the Level Trading Indicator For MT4 will then be able to exploit such new moves in the price whenever they appear. Understanding this market behavior will then empower the trader to be able to understand and foresee the market moves ahead of time before they happen.
Another very important advantage to using the Level Trading Indicator For MT4 is that it can help a trader to spot and take advantage of profitable entries whenever they appear in the price. This means that the trader would be able to identify these profitable entry opportunities whenever they appear and would be able to take advantage of them since he or she would have enough time to prepare for the price moves long before they appear.
For instance, on a trader's chart, the market suddenly makes a sharp price move in the upward direction and also the trader can identify this price move using the indicator because there is a red colored symbol created by the indicator beneath the price move. The market then immediately begins to retrace after the price move and the retracement makes the indicator to print a blue colored symbol above the price in order to signify that the first leg of the move is currently complete.
Once the trader sees this new blue symbol, he or she immediately knows that the price has gone into a retracement and then begins to get for the next price move as the retracement cannot be longer than the initial price move in the direction that the trader is looking at for the setup to be valid. Once the trader is able to spot the second leg forming, he or she would then need to be patient and wait for the third leg to start forming before he or she can participate in the price move.
The direction of the third price move should be in the same direction as the first price move and the trader will generally know when the time is right to enter a trade for the next price move when the second move completes and the indicator puts in a new red symbol below the price low in this example. Once the trader sees the new red sign below the low that the price has created, he or she can then buy the currency pair and place his or her stop-loss under that low created by the price.